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Ann Arbor biotech NanoBio to develop flu, RSV vaccines for Merck

Ann Arbor-based NanoBio Corp., one of the most successful fundraisers in the history of state technology companies, announced today that it has signed a licensing agreement with a subsidiary of Merck & Co., the New Jersey-based pharmaceutical giant, to help develop two potential vaccines.

Merck will receive the exclusive rights to an intranasal vaccine to fight respiratory syncytial virus (RSV) and nonexclusive rights for an intranasal flu vaccine.

Terms were not released.

In a news release, NanoBio said it will receive an upfront payment, milestone payments based on the vaccines’ development and regulatory approval, and royalties on eventual sales.

“We've collaborated with Merck on research in RSV since 2011 and are very pleased to broaden our relationship with this license agreement,” said David Peralta, NanoBio’s CEO.

RSV is a highly contagious viral disease and one of the most common causes of bronchiolitis and pneumonia. It is the No. 1 cause of childhood hospitalization in the United States and around the world. Nearly all children are infected with the virus at least once by age 3.

Currently, there are no approved vaccines for RSV.

NanoBio was founded in 2000 by James Baker, a physician and professor at the University of Michigan. He joined Merck in October 2012 as senior vice president to head up its global vaccine business. Over the years, NanoBio has raised more than $130 million, about half in grants and the other half in equity capital.

Last year, Merck announced a licensing agreement with another UM spinoff, Lycera Corp., that could be worth more than $300 million as it hits milestones to develop small-molecule drugs to treat a range of immune-mediated disorders.